India’s micro and small enterprises saw a whopping 32% drop in jobs in the last 4 years: Survey

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• The trader segment saw a 43% decline in number of jobs since 2014 according to a survey by the All India Manufacturers’ Organisation (AIMO).
  
• The job losses have been attributed to a 70% drop in operational profits since 2014.
  
• Demonetisation and GST roll out are among reasons that impacted the sector.
  

India’s micro, small and medium (MSMEs) have seen a dramatic drop in the number of jobs amid declining operational profits since 2014, according to a survey by the All India Manufacturers’ Organisation (AIMO).

Specifically, the trader segment saw a 43% decline in number of jobs since 2014, followed by a 32% drop in the micro-enterprises and 35% in small enterprises. The medium-scale enterprise segment, meanwhile, a 24% fall in the same period.

Overall, the trader and the MSME sector saw a loss of over 3.5 million jobs since 2014, according to the survey, which which analysed over 34,000 traders and MSMEs across India between October 1 and 30, 2018.

The job losses have been attributed to a 70% drop in operational profits since 2014, the Indian Express reported, citing K E Raghunathan, president of AIMO. After a steady growth in jobs up until 2015-2016, the trader and the MSME sector were significantly hit by demonetisation and the implementation of the Goods and Services Tax (GST), according to him.

There are an estimated 51 million MSMEs in India that make up over 40% of the country’s GDP. AIMO members include MSMEs in engineering, chemicals, pharmaceuticals, food processing and services sectors.

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